Equipment Lessors and Bankruptcy
July 01, 2017
Much has been written about the risk that a transaction denominated and documented as an equipment "lease" may be recharacterized a security interest. Equipment lessors seem to understand. Interestingly, equipment lessors commonly seem to not understand all of the rights and remedies they have in the absence of recharacterization. So, what's a true equipment lessor to do in the face of the Chapter 11 of its lessee?
Case Notes
July 01, 2017
In April, the Court of Appeal of Florida, First District, determined in that condominium owners who rented their properties to vacationers through the online service VRBO2 had not violated restrictive covenants not to conduct business in their units. Here's an analysis of the case.
Financing Rolling Stock: Luxembourg Rail Protocol Steams Ahead
June 02, 2017
Cross-border trade and international law regimes are all affected by the Luxembourg Rail Protocol to the Cape Town Convention (the Cape Town Convention on International Interests in Mobile Equipment (the Convention)), which is well known to those experienced in aircraft financing. Like the Hague Securities Convention, the Cape Town Convention was sponsored by UNIDROIT (the International Institute for the Unification of Private Law), an intergovernmental organization whose mission is to harmonize international laws.
Using a True Lease or a TRAC Lease
June 02, 2017
<b><I>Potential Complications in Bankruptcy</I></b><p>An equipment financing company will often decide whether it wants a transaction to be a true lease or a TRAC lease as opposed to a retail sale. A good reason to be able to make the distinction is to determine what might be the best structure for an equipment financier. This article explores the differences.
Stick to the 'Plain Meaning'
June 02, 2017
<b><I>Interpreting Lease Contract Terms</I></b><p>The complications that can and do arise in the field of commercial leasing come in all shapes and sizes, and not all can be anticipated. However, with careful planning, and if the stars align, lease terms sometimes cover even an abnormal future event, preserving the agreement that the parties undoubtedly contemplated at signing
Do <b><I>Daubert</I></b> Motions Really Work?
June 02, 2017
<b><I>Part One of a Three-Part Article</I></b><p>More than 20 years into the Daubert era, a surprising number of litigators still have doubts and disagreements about the effectiveness of motions <I>in limine</I> challenging the admissibility of federal court opinion testimony under Federal Rules of Evidence (FRE) 702. Among the concerns commonly expressed by the trial bar is the perception that so-called <I>Daubert</I> motions are a long shot at best, often not worth the time and effort.
Railcar Leasing on the Rise
June 02, 2017
According to a recent analyst report from global market research company, Technavio, the railcar leasing market in North America, is predicted to grow steadily at a Compound Annual Growth Rate of above 9% by 2021. The report, titled Railcar Leasing Market In North America 2017-2021, finds that one of the primary drivers for this market is the rise in the demand for tank cars due to growing crude oil production.
Five Secrets to Drafting an Effective Default Lease
June 02, 2017
<b><I>Part One of a Two-Part Article</I></b><p>This article contains some of the lesser-known, creative clauses used to ensure either payment of rent and compliance, or a swift eviction of the commercial tenant. They are what the authors call "tools of the effective default clause."
